POM » Topics » Capital Requirements

These excerpts taken from the POM 10-Q filed May 7, 2009.

Capital Requirements

Liquidity

The continued disruptions in the capital and credit markets, combined with the volatility of energy prices, have had an impact on the borrowing capacity and liquidity of Pepco. Since the third quarter of 2008, to address the challenges posed by the current capital and credit market environment and to ensure that Pepco will continue to have sufficient access to cash to meet its liquidity needs, Pepco has taken several measures to reduce expenditures, issued $250 million in long-term debt securities and resold $110 million of Pollution Control Revenue Refunding Bonds (as discussed above).

Capital Expenditures

Pepco’s capital expenditures for the three months ended March 31, 2009, totaled $67 million. These expenditures were primarily related to capital costs associated with new customer services, distribution reliability and transmission.

During the first quarter of 2009, Pepco updated its projection of capital expenditures for 2009. Total capital expenditures for 2009 are expected to be approximately $323 million, with $209 million of distribution projects, $9 million of distribution projects specifically related to the Blueprint for the Future, $45 million of transmission projects, $46 million of transmission projects specifically related to the Mid-Atlantic Power Pathway and $14 million of other capital projects.

Capital Requirements

Liquidity

The continued disruptions in the capital and credit markets, combined with the volatility of energy prices, have had an impact on the borrowing capacity and liquidity of DPL. Since the third quarter of 2008, to address the challenges posed by the current capital and credit market environment and to ensure that DPL will continue to have sufficient access to cash to meet its liquidity needs, DPL has taken several measures to reduce expenditures, issued $250 million in long-term debt securities and resold $9 million of Pollution Control Revenue Refunding Bonds (as discussed above).

Capital Expenditures

DPL’s capital expenditures for the three months ended March 31, 2009, totaled $37 million. These expenditures were primarily related to capital costs associated with new customer services, distribution reliability and transmission.

 

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DPL

 

During the first quarter of 2009, DPL updated its projection of capital expenditures for 2009. Total capital expenditures for 2009 are expected to be approximately $252 million, with $108 million of distribution projects, $34 million of distribution projects related to the Blueprint for the Future, $62 million of transmission projects, $10 million of transmission projects specifically related to the Mid-Atlantic Power Pathway, $21 million of gas delivery projects and $17 million of other capital projects.

Capital Requirements

Liquidity

The continued disruptions in the capital and credit markets, combined with the volatility of energy prices, have had an impact on the borrowing capacity and liquidity of ACE. Since the third quarter of 2008, to address the challenges posed by the current capital and credit market environment and to ensure that ACE will continue to have sufficient access to cash to meet its liquidity needs, ACE has taken several measures to reduce expenditures and issued $250 million in long-term debt securities.

Capital Expenditures

ACE’s capital expenditures for the three months ended March 31, 2009, totaled $28 million. These expenditures were primarily related to capital costs associated with new customer services, distribution reliability and transmission.

 

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ACE

 

During the first quarter of 2009, ACE updated its projection of capital expenditures for 2009. Total capital expenditures for 2009 are expected to be approximately $152 million, with $97 million of distribution projects, $6 million of distribution projects specifically related to the Blueprint for the Future, $13 million of distribution projects specifically related to ACE’s recently approved Infrastructure Investment Plan, $28 million of transmission projects and $8 million of other capital projects.

On April 16, 2009, the New Jersey BPU approved ACE’s proposed Infrastructure Investment Plan and the revenue requirement associated with recovering the cost of these projects, subject to a prudency review in the next rate case. The approved projects will simultaneously enhance reliability of ACE’s distribution system and support economic activity and job growth in New Jersey in the near term. Cost recovery will be through an Infrastructure Investment Surcharge effective on June 1, 2009. This approved plan will add incremental capital spending of approximately $13 million for 2009 and $15 million for 2010. ACE is required to file a rate case no later than April 1, 2011. As part of this base rate case the remaining unamortized amounts associated with these projects will be placed into rate base.

EXCERPTS ON THIS PAGE:

10-Q (3 sections)
May 7, 2009
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